Brawn: F1 budget cap agreement now 'in final stages'

Formula 1 director of motorsports Ross Brawn says an agreement over the sport's budget cap that will be introduced next year is on the verge of being finalized.

F1's cost cap level had initially been set at $175m, but the onslaught of the coronavirus and the sport's subsequent economic downturn compelled F1's chiefs and the teams to reduce the spending limit to $145m.

However, that level, to which the large teams agreed, is being disputed by the smaller outfits seeking a further push back, with McLaren lobbying for a cut all the way to $100m justified by the current crisis and its longer term impact on the teams' financial health.

Discussions and consultations have been ongoing between commercial rights holder Liberty Media, the FIA and the teams, but Brawn says the talks have now come to a head.

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"I think the details will be going out to the teams in the next few days," Brawn told Sky F1.

"There's been a lot of consultation. And I think we're now at the very final stages, so it will all become clear shortly.

"The budget cap's initial objectives were a more competitive field. And I think with the situation we have now the economic sustainability of F1 is the priority.

"I think that counts as much for the big teams as it does for the small teams. And it's become very clear from the people who stand above some of the team principals and management of these teams, the message is clear, we've got to cut costs.

"We started on $175m. That was a long battle to get it there. And with the current crisis, we're now going to start at $145m. And the discussion really is how much further down can we drive it the next few years?"

Ferrari has been inflexible in its refusal to accept a cut below the $145m threshold, arguing that another reduction of the limit would force it to implement significant layoffs in Maranello at a time of personal hardship for its workers.

Successive incremental cutbacks of the spending level over the coming years would allow the big teams to curtail their resources over time.

Brawn sees only positive developments for F1 in the future if teams are forced to trim spending levels.

"I think there's going to be a much more equitable prize fund in the new [Concorde] agreement," he said.

"So the midfield teams in particular are going to be much better off in terms of their portion of the prize money.

"So it's being balanced in every direction, we reduce the amount of money that could be spent in F1, and we're in improving the distribution of the prize fund more evenly amongst the teams.

"A good middle field team should be able to score podiums, maybe a win, and it should make a small profit. And if we can achieve that then we're got a very sustainable future."

Brawn confirmed that Liberty Media's recent asset swap among its subsidiaries and which boosted F1's coffers by $1.4m will allow the latter to financially support its constituents as they weather the current storm and suffer an inevitable revenue shortfall.

"We'll judge on what level we should support the prize fund in the next 6-12 months, because obviously, we want to keep it alive. If we lose some teams in this period, it will be a tragedy," Brawn explained.

"So we're working very hard in a fair and equitable way amongst the teams.

"I think Liberty have shown their strength, and created this fighting fund, and we just need to see how things now develop.

"We need to look at what the calendar looks like, look at what the income is like for the rest of the season.

"And then sit down with the teams and see how we can find a way of making sure we all continue on this journey, because the future looks so good.

"We've got 10 very good teams in F1, let's keep it that way."

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